Fact Check: The US was richer in 1903 than in 2025

The Claim: "The US was richer in 1903 than in 2025"

Introduction

The assertion that the United States was financially better off in 1903 than in 2025 raises questions about economic metrics and historical context. This claim invites scrutiny of economic indicators such as Gross Domestic Product (GDP), per capita income, and overall wealth distribution across different eras.

What We Know

GDP in 2025: According to the U.S. Bureau of Economic Analysis (BEA), the real GDP for the first quarter of 2025 showed a decrease of 0.3% compared to the previous quarter, with a nominal GDP projected to be around $27.361 trillion for 2023, reflecting a significant growth trend over the decades 1 9.
Historical GDP Data: In 1903, the nominal GDP of the United States was approximately $30 billion (equivalent to about $1 trillion in 2023 dollars when adjusted for inflation) 4 5. This figure is significantly lower than the current GDP figures, suggesting that in nominal terms, the U.S. economy has grown substantially since 1903.
GDP Per Capita: In 1903, the GDP per capita was around $400 (equivalent to about $13,000 today) 5. In contrast, as of 2025, the U.S. has one of the highest GDP per capita figures globally, estimated at around $80,000 4. This indicates that the average American today is wealthier than their counterpart in 1903.
Economic Context: The economic landscape in 1903 was vastly different from that of 2025. The U.S. was still largely agrarian, with a significant portion of the population engaged in farming. In contrast, the modern economy is characterized by advanced technology, services, and a globalized market 4 5.

Analysis

The claim that the U.S. was richer in 1903 than in 2025 relies heavily on the interpretation of economic data.

Source Reliability: The BEA is a credible source for current economic data, providing official statistics that are widely accepted in economic analysis 1 2. Historical data, such as that from Wikipedia and economic history articles, can vary in reliability depending on the methodology used for inflation adjustment and historical context 4 5.
Methodological Concerns: Comparing economic wealth across such a vast time span requires careful consideration of inflation, changes in population size, and shifts in economic structure. For instance, while nominal GDP has increased, the distribution of wealth and the cost of living have also changed dramatically, affecting the real purchasing power of individuals 3 4.
Potential Bias: Some sources, particularly those that may have a specific economic agenda (such as think tanks or political organizations), could present data in a way that supports their narrative. For instance, claims about tariffs affecting GDP growth could reflect a specific economic viewpoint rather than an objective analysis 3.
Contradicting Evidence: While some may argue that the economic conditions of 1903 were preferable due to lower living costs or less economic disparity, this perspective often overlooks the significant advancements in quality of life, healthcare, and technology that have occurred since then 4 5.

Conclusion

Verdict: False

The claim that the United States was richer in 1903 than in 2025 is false based on several key economic indicators. The nominal GDP and GDP per capita figures clearly demonstrate that the U.S. economy has grown significantly over the past century, with current GDP per capita estimated at around $80,000 compared to approximately $13,000 in 1903. Additionally, the economic context has shifted dramatically, with advancements in technology, healthcare, and overall quality of life that were not present in 1903.

However, it is important to acknowledge the limitations of this analysis. Economic data can be subject to varying interpretations, and the historical context must be considered when making comparisons across such a vast time span. Factors such as wealth distribution, cost of living, and subjective quality of life measures can complicate the assessment of economic well-being.

Readers are encouraged to critically evaluate information and consider multiple perspectives when assessing claims about economic conditions across different eras.

Sources

Gross Domestic Product, 1st Quarter 2025 (Advance Estimate). U.S. Bureau of Economic Analysis. Link
Gross Domestic Product | U.S. Bureau of Economic Analysis. Link
The Fiscal and Economic Effects of the Revised April 9 Tariffs. Yale Budget Lab. Link
Economy of the United States. Wikipedia. Link
Economic statistics of the United States. Wikipedia. Link
List of countries by past and projected GDP (nominal) per capita. Wikipedia. Link
US GDP by Year: A Century of Essential Facts (1920-2025) - Fortunly. Link
U.S. GDP by Year, Compared to Recessions and Events - The Balance. Link
U.S. GDP 1960-2025. Macrotrends. Link
U.S. GDP 1960-2025 - Macrotrends. Link